This paper examines the Colombian tax system as it is represented in the 1997 social accounts. We implement an economic model based on these data and evaluate the welfare e®ects of raising additional government revenue. The paper considers the marginal and inframarginal cost of raising revenue...

Introduction. Colombia is facing a fiscal situation featuring large and probably unsustainable projected deficits. The solution will almost certainly involve some combination of increased tax revenues and decreased expenditures. Tax revenue increases can come from either raising the rates or...

This paper analyses these payroll taxes, focusing specially on what is called the "parafiscales". The parafiscales are defined by Artivle 2 of Law 225 (1995) as "mandatory taxes established by law, which affect a certain and unique social or economic group and are used for the benefit of the...